Personal finance
A lease typically protects the landlord but not the renter.
false
The escrow account is used to accumulate funds for
both homeowner's insurance premiums and real estate property taxes.
An original tenant who subleases to another tenant is automatically released from financial responsibility for future rent payments.
false
Mortgage lenders generally prefer that total monthly debt does not exceed a 2:1 ratio of gross monthly income.
false
The security deposit is an amount paid in advance to a landlord for normal wear and tear on rental property.
false
When estimating monthly housing costs after the purchase of a home, add an additional 10 to 15 percent to your mortgage loan payment for such things as homeowner's insurance, property taxes, maintenance, and upkeep.
false
The process in which the lender sues the borrower to prove default and asks the court to order the sale of real estate property to pay the mortgage debt is called
foreclosure
The dollar value of the home in excess of the outstanding mortgage debt is called
homeowner's equity
____ is when the home is financially and legally transferred to the new owner.
closing
Carl has found an apartment that has monthly rent payment of $950 and requires a one month's security deposit and a $500 damage deposit. In order to move in, Carl will probably be required to pay
$1450
Jillian wants to rent an apartment that has monthly rent payments of $850 and requires a $400 security deposit and a $500 damage deposit. In order to move in, Jillian will probably be required to pay
$1750
Martha and Gordon purchased a home for $175,000 six years ago with a 5.5 percent, 30-year $140,000 mortgage. Their home now has a market value of $220,000 and they owe $124,000 on the mortgage. What is the equity in their home?
$96,000
When preparing a budget to buy a new home, you should add an additional ____ percent to the monthly payment on the loan for such things as homeowner's insurance, property taxes, maintenance, and upkeep.
40
The typical required loan-to-value ratio today is no more than
80 percent
A renter may have to pay ____ when moving into an apartment.
All of these
Which real estate agent works solely for the home buyer?
Buyer's agent
________ clauses specify that certain conditions must be satisfied before a home purchase contract is binding
Contingency
Which of the following characteristics would cause a person to prefer renting over buying housing?
Unknown job stability in the geographical area
A loan to purchase real estate in which the real estate itself serves as collateral is a ____ loan.
mortgage
____ mortgage insurance is generally required for any mortgage loan where the down payment is less than 20 percent
private
Making a larger than required down payment on a given home will
reduce the amount of the monthly payments.
When a tenant who wants to move before his or her lease is up and leases to another tenant, this is called
subleasing
Lenders in the sub-prime market offer loans
to higher-risk applicants
A loan origination fee, recording fee, and an appraisal fee are examples of miscellaneous expenses involved in buying a home
true
A title to real property is the legal right of ownership interest.
true
Buying a home represents the largest expenditure most people ever make
true
Subleasing means leasing the property from the original tenant to another tenant before the lease expires.
true
You should always obtain a prequalification from a lender before your search for a home to buy.
true